Li Wenli (above) has resigned from his post as chief executive of SAP China, the world's leading business software solutions application and service provider, citing personal reasons.

SAP appointed Mark Gibbs, president and CEO of SAP North Asia, to take over Li's job.

Last May, Li replaced Klaus Zimmer in the chief executive position. Insiders said Li resigned because SAP's sales in China, its fastest growing region, did not meet targets.

MARKET

Film group listing

China Film Group Corp (CFGC), a leading State-owned film company, will likely list this year, raising 20 to 30 times its assets, estimated at 90 billion yuan.

Yang Buting, president of CFGC, said the company is awaiting approval for an initial public offering (IPO) and funds raised will be used to expand its cinema network and shoot more films.

CFGC will be the first Chinese film company to go public if the share sale is approved.

Asia Christine stake

Shanghai Yuyuan Tourist Mart Co Ltd, a comprehensive commercial group, will buy a 5 percent stake in Asia Christine International Corp.

Asia Christine is the parent of Shanghai Christine Food Co, China's leading food chain. Yuyuan Tourist Mart agreed to pay 110 million yuan for the stake.

Share sale

Yunnan Aluminium Co Ltd will raise 1.02 billion yuan by selling 80 million shares to develop its intensive aluminum processing business.

The funds will be used to build new equipment. When they are put into operation, the company is expected to generate 300,000 tons of products annually, including 250,000 tons of intensive process products.

CDB denies reports

China Development Bank (CDB) isn't considering buying a stake in Citibank, the Oriental Morning Post reported, citing CDB spokesperson Yang Hua.

Recent media reports said CDB had signed an agreement to buy a share of more than 1 percent in Citibank for $2 billion, pending State Council approval.

But Yang denied the reports. "We haven't heard about this and can't give any comment," said Yang.

Yang also declined to comment on rumors CDB will list in the first half this year and would not say whether Barclays Bank will be brought in as its strategic partner.

GRAPEVINE

Capital boost

Guangzhou Railway Group is expected to invest in its subsidiary, Hong Kong-based Guangshen Railway Co Ltd, so that it can pursue mergers and acquisitions, China Business News reported.

Details of the investment are still under discussion, the report said. A spokesperson for Guangzhou Railway refused to comment.

Guangzhou Railway holds a 41 percent stake in Guangshen Railway and currently operates a 4,340-km rail network across Guangdong, Hunan and Hainan provinces.

Cosmetics M As

Shanghai Jahwa United Co Ltd, the largest State-owned cosmetics manufacturer, is brewing merger and acquisition plans, Shanghai Securities News reported.

The company is pursuing other cosmetics brands, the report said.

In 1990, Shanghai Jahwa partnered with US cleaning products firm SC Johnson, to develop its two brands. But the tie-up ended in 1994 after sales dropped.

BIZ UNUSUAL

Peacock craze

Peacock breeders in Beijing and Tianjin are doing well selling peacock meat to restaurants in Jiangsu, Zhejiang and Guangdong provinces and Chongqing municipality.

The birds are given nutritious food and get plenty of exercise to ensure the meat is good quality. The certified breeders even play music to the peacocks.

Peacocks usually weigh about 5 kg and sell for 100 yuan per kg.

Pork sideline

At Nanlu Junior Middle School in Tunchang, Hainan province, students from low-income families or rural areas are earning cash by feeding and taking care of pigs after class.

The school bought 36 piglets in November for 350 yuan each and gave some of its students responsibility for raising them.

Most of the students that applied for the job were from low-income families. They usually feed the pigs three times a day and take turns to guard them in the evenings.

The pigs will be sold for 1,600 yuan after five months.

LOCAL

Zhejiang loan deal

China Construction Bank (CCB) signed an agreement with Zhejiang Chamber of Commerce to give a 20 billion yuan loan to the province's small- and medium-sized companies that perform well.

In the last six months, many loan deals have been struck between Chinese commercial banks and local authorities, but this is the biggest yet.

CCB and the provincial government are discussing details of how to distribute funds to local companies after Spring Festival. Funds are to be allocated within two years.

Dormant land tax

The Xinjiang Uygur autonomous region government will levy a tax of 20 percent of the land price for local property developers who have kept vacant land for more than a year.

The strategy aims to speed up development and stabilize housing prices in the region. It comes after the State Council's recent call for vacant land to be developed into housing as soon as possible.

The region's officials said they will investigate vacant land lots and deal with development delays by May. In Xinjiang's capital Urumqi alone, 3.2 millionsqm of land is lying dormant in the hands of local property developers.

Fruit mania

A store selling only fresh fruit and fruit juice recently opened in Beijing's Chaoyang district.

With about 100 types of fruit juice on the market under local and foreign brands, more stores of this type are expected to open in the capital in the future.

(China Daily 01/16/2008 page15)